Pre-Open Data
Key Data for the Week
Key economic data released this week:
Australian Market
The Australian sharemarket rose 0.4% yesterday in a mixed session of trade, ahead of the US election this Wednesday and the RBA Cash Rate decision today. The Utilities sector led the gains, up 2.0%, followed by REITs and Telecommunications.
The Financials sector closed higher, lifted by a 2.4% gain in ANZ. NAB rose 1.2%, while Commonwealth Bank slipped 0.2% and Westpac lost 0.6% after the company reported a 62% drop in full-year cash earnings, largely from the effects of COVID-19 and its $1.3 billion penalty for breaching money laundering and terror financing laws. Wealth manager AMP extended its gains from last week, up 10.0% yesterday, after the company provided further details on the Ares Management Corporation takeover.
REITs also enjoyed gains, closing up 1.8%. Cromwell Property Group jumped 5.1% and Stockland rose 3.6%, while GPT and Charter Hall Retail added 3.0% and 1.5% respectively.
The Energy sector was the weakest performer; Beach Energy slumped 2.5% and Santos lost 1.7%, while Oil Search and Woodside Petroleum fell 1.2% and 0.6% respectively.
Health Care also closed weaker yesterday; CSL fell 0.5% and Ramsey Health Care slipped 0.3%, while Cochlear and Sonic Healthcare bucked the trend to gain 1.2% and 0.3% respectively.
The Australian futures market points to a relatively flat open today.
Overseas Markets
European sharemarkets advanced yesterday, with the broad-based STOXX Europe 600 closing up 1.6%. European banks outperformed; Deutsche Bank jumped 5.0%, HSBC added 2.5% and Barclays rose 0.5%. Industrials also saw gains on Monday; Vinci gained 3.8%, while CRH and Eiffage lifted 3.7% and 3.1% respectively. The Energy sector was the strongest performer, up 3.6%. Royal Dutch Shell added 4.7%, while BP gained 4.4%.
US sharemarkets also closed higher on Monday, with gains broad based. The Information Technology sector saw mixed results; Spotify slipped 3.5% and Facebook lost 0.7%, while NVIDIA and Alphabet rose 0.4% and 0.3% respectively. The Energy sector was the strongest performer after a rebound in crude oil prices pushed oil stocks higher. ExxonMobil jumped 4.2%, while Chevron gained 3.8%. The Financials sector outperformed; Morgan Stanley and JP Morgan Chase lifted 2.6% and 2.3% respectively, while Bank of America rose 1.6%. Financial services also enjoyed gains; Visa climbed 1.7% and PayPal added 0.9%, while MasterCard improved 0.5%.
By the close of trade, the Dow Jones rose 1.6% and the S&P 500 lifted 1.2%, while the NASDAQ gained 0.4%.
CNIS Perspective
Building approvals released yesterday showed a significant rise in activity, which soared 15.4% in September, a rebound from a small 2.3% contraction in August.
The September reading brings building approvals back to pre-COVID levels, with close to 16,000 new dwellings approved in September.
While there are risks facing the Australian housing sector, including a potential rise in unemployment and slower population growth, these are currently being outweighed by the impact of lower interest rates and government incentives.
So successful has the Federal Government’s HomeBuilder program been, that in the October Federal Budget the Treasurer decided against an extension to the program beyond the end of the year, against public expectations.
With a Reserve Bank of Australia interest rate cut widely expected today, this should provide a further boost to the housing sector, which is already getting back into full swing.
Should you wish to discuss this or any other investment related matter, please contact your Investment Services Team on (02) 4928 8500.
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